When you’re looking for a used car but have credit challenges, you may come across dealerships advertising Buy Here Pay Here (BHPH) financing. On the surface, it can sound appealing: no banks, easy approvals, and fast paperwork. But for many buyers in Spokane, Spokane Valley, Hayden, and Post Falls, the drawbacks far outweigh the benefits. Understanding how BHPH works—and why it is often a costly mistake—can help you make a smarter, more affordable decision when buying your next vehicle.

At Auto Credit Sales, our mission is to provide reliable vehicles with financing that truly helps customers move forward. We believe in transparency and long-term support, not the high-risk, high-cost structure most BHPH lots are known for. This blog will break down what Buy Here Pay Here really is, why so many customers regret using it, and how our dealership provides a far better alternative.

What Is Buy Here Pay Here?

Buy Here Pay Here dealerships offer both the car and the financing in-house. Instead of working with a bank or outside lender, they finance the loan themselves. This means you make your payments directly to the dealership—often weekly or bi-weekly—in person or through a limited online system.

BHPH lots became popular because they offer approvals even for customers with poor or no credit. The promise of “no credit checks,” “everyone approved,” and “drive today” draws people in, especially if they feel like other lenders will turn them away. But the approval process comes with serious trade-offs.

The dealership takes on risk by financing the loan themselves, so they protect that risk by inflating interest rates, limiting vehicle choices, and adding strict payment rules. What looks like an easy solution upfront can quickly turn into a financial trap.

Why Buy Here Pay Here Often Leads to Overpriced Vehicles

One of the biggest problems with BHPH is that the cost of the vehicle is significantly higher than traditional dealerships. Buyers may end up paying thousands more than a car is worth. High prices are often paired with high interest rates, which can range anywhere from 20% to 30% or more.

Dealerships can charge these extreme rates because they know customers may feel like they don’t have other options. Unfortunately, this often results in long-term financial strain.

At Auto Credit Sales, we believe in fair pricing and competitive rates, even for customers with less-than-perfect credit. We partner with trusted lenders who offer more reasonable terms, helping customers keep monthly payments manageable without overpaying.

Buy Here Pay Here Cars Are Often Older and Less Reliable

Another major drawback with BHPH lots is the quality of vehicles. Because the dealership is loaning their own money, they usually stock older, high-mileage cars that cost them very little upfront. While every dealership can have older vehicles, BHPH lots often prioritize profitability over reliability.

Customers frequently report that their BHPH cars require repairs soon after purchase. When unexpected repairs happen on top of high payments, buyers can quickly fall behind. And falling behind comes with serious consequences—often more serious than with traditional lenders.

Auto Credit Sales takes pride in offering quality, inspected used vehicles at every location—from Spokane and Spokane Valley to Hayden and Post Falls. We believe customers deserve dependable transportation that lasts long after the paperwork is signed.

Repossession Rates Are Significantly Higher

Buy Here Pay Here dealerships are known for having high repossession rates. They design their business model around repeated repossessions and resales. Because they finance the vehicle, they can repossess it quickly and easily if a buyer misses even one payment.

Here’s where the trap comes in:

• High payments make it easy to fall behind.
• Strict weekly or bi-weekly due dates leave little flexibility.
• Once the car is repossessed, the customer loses transportation and the money they’ve already paid.

A buyer may spend months paying toward a BHPH vehicle, only to lose it over a single missed payment. That’s not support—that’s a cycle.

At Auto Credit Sales, we work with outside lenders who follow standard, regulated financing practices. Our goal is to help customers succeed, not set them up to fail. We help match customers with lenders who offer flexible monthly payment options that fit their lifestyle.

Most Buy Here Pay Here Loans Do Not Help Build Credit

One of the biggest myths about BHPH is that making payments will improve your credit. In reality, many BHPH dealerships do not report on-time payments to major credit bureaus. But they may report missed payments or repossessions.

This means you could successfully make every payment and still see no improvement to your credit score. Then, if something goes wrong and the vehicle is repossessed, your credit takes a hit anyway.

When you finance through Auto Credit Sales, our lender partners report all payments, both on-time and late. That means every positive step you take helps rebuild your credit and opens the door to better future financing.

Hidden Fees and Tight Restrictions Are Common

Buy Here Pay Here contracts often include strict rules that traditional lenders do not. Common issues include:

• Required weekly in-person payments
• GPS trackers or starter-interrupt devices that disable the car
• High late fees
• Mandatory insurance policies that cost more than standard insurance
• Additional fees for anything from account access to payment processing

These rules add pressure and make it difficult for customers to keep up.

Auto Credit Sales offers transparent financing with clear terms and no hidden surprises. You know exactly what your payments, fees, and responsibilities are before you sign.

Why Auto Credit Sales Is a Better Alternative

At Auto Credit Sales in Spokane, Spokane Valley, Hayden, and Post Falls, we specialize in helping customers with bad credit, no credit, or previous financial challenges—but without the predatory practices common in Buy Here Pay Here dealerships.

Here’s what makes us different:

1. Access to Multiple Lenders

We work with a network of lenders that offer competitive rates and better terms than BHPH lots. This gives buyers more options and better flexibility.

2. Affordable Monthly Payments

We help structure loans that make sense for your budget. No weekly surprises or payment traps.

3. Credit-Building Opportunities

Every on-time payment reported helps you rebuild your financial future.

4. Quality Used Cars

Our inventory is inspected, reliable, and priced fairly. You deserve a vehicle you can trust.

5. Transparent, Honest Financing

No tricks, no hidden fees, and no inflated pricing. Just straightforward service.

Final Thoughts

Buy Here Pay Here may look convenient, but it often leads to higher costs, unreliable cars, and financial hardship. For buyers in Spokane, Spokane Valley, Hayden, and Post Falls, there are far safer and more affordable alternatives.

Auto Credit Sales is here to help you get approved, get reliable transportation, and move forward with confidence—all without the risks of Buy Here Pay Here financing.

If you’re ready for a better way to buy a used car, visit us today at any of our four locations- Spokane, Spokane Valley, Hayden, and Post Falls or browse our inventory online. We’re here to help you get back on the road the right way.